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WGU D103 Time Value of Money Practice Questions SPRING 2026
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May 2026

2025/2026
A company issues a five-year zero-interest-bearing note for a new vehicle it purchased for $25,000. The market rate of interest at the time the note was issued is 4%. Assuming an annual interest rate of 4% for five years is appropriate, the present value of the principal is $25,000 × 0.82193 = $20,548. Assuming an annual interest rate of 5% for 4 years is appropriate, the present value of the principal is $25,000 × 0.82270 = $20,568. What amount should be recorded for the cost of the ve...
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